After securing govt licenses for oil blocks, now companies must secure another one-social license to operate in affected communities
As oil and gas companies accelerate activities leading to oil production, they have a difficult part to accomplish- achieving social licenses to operate – in a manner that is consistent with International principles or risk losing community trust, but ultimately, businesses.
While providing social services does not form part of the business agreements that investors of mega projects sign with respective governments, oil companies, and contractors have established social amenities in areas of their operation for those communities.
These are intended to build beneficial relationships and public trust in their activities with a view to preventing social conflicts, while also remaining in consonance with international principles.
International Finance Corporation Performance Standards require companies to ensure Community Health, Safety, and Security and provide specific requirements for mitigating of any potential community exposure to risks and impacts arising from equipment accidents, structural failures, and releases of hazardous materials.
Health services
In the latest, TotalEnergies EP, operator of the Tilenga oil and gas project in Albertine Graben, commissioned Avogera Health Centre II, an outpatient department (OPD) facility which it refurbished to boost health services in Ngwedo sub-county, Buliisa district.
The health center is now equipped with an ultrasound machine, oxygen masks and kits, an assortment of drugs, beds, chairs, and tables, and theatre kits among others. The items will enable doctors to give the patients high-quality treatment.
The health center shall service the communities in Kasenyi, Kirama, Kisomere, Uduk II, Kibambura, Kilyango, and Avogera villages. Previously, they traveled between 4 km and 6 km to access health services. “This, therefore, was something that we felt sincerely needed to be implemented in the spirit of standing together with our community. This is the TotalEnergies spirit and our way of doing things.” states the press release.
The latest addition is a boost to Buliisa district which has on record 11 health facilities, one of them being the district hospital. “This facility with help to save the movement of our people from Buliisa to Hoima hospital. I think this will end when we have the personnel to run the machines,” said Hon Allan Atugonza MP Buliisa County.
Other health facilities are Buliisa Heath Center IV, Sebagoro Health, and Kyehoro Maternity Health Center in Hoima. These are part of sustainability programs for project-affected-affected. Local governments in areas where the facilities are located are expected to provide staff, medical supplies, and maintenance of the facilities.
Access to clean and safe water
At least 13,000 people will stay safe from water-borne diseases and ill-health caused by poor sanitation after China National Off Shore Oil Corporation (CNOOC)Uganda Limited opened the taps of the gravity water project it set up in Buhuka flats, Kikuube district.
Buhuka flats are the host community for the Kingfisher Development area where CNOOC operates within the Albertine Graben, western Uganda.
In February, CNOOC contracted SAMKA, a fully owned Uganda company to rehabilitate the water project. Now operational, the water project benefits : Nsunzu A, Nsunzu B, Kyakapere, Nsonga A, and Nsonga B villages and a community market.
The water and sanitation project is part of CNOOC’s move to win support from host communities, local government, and the general public for being a good neighbour. This is intended to create and maintain relationships to achieve unhindered operations.
“CNOOC Uganda Limited will remain a dependable partner in improving the livelihoods of the host communities and this is a continuation of the different projects undertaken by CNOOC Uganda Limited in that regard,” said Mr. Hu Weijie, Vice President, CNOOC.
Meanwhile, TotalEnergies EP Uganda handed over the Kirama water project to the Buliisa District authority last year. The water project is part of the company’s livelihood restoration programs for project-affected persons. The 10,000-litre water project is aimed at extending piped water supply to close to 2,000 people in the villages of Kirama, Kichoke, and Katodio.
Day 39 #90daysofoil Looks at how the public is being positioned to take advantage of oil and gas opportunities with respect to food and nutrition security.
Agriculture: Food security and nutrition
In a bid to ensure that smallholder farmers supply agricultural products that meet international standards as required by oil companies, joint venture partners CNOOC and TotalEnergies contracted Self Help Africa (SHA), to train farmers in the Albertine Graben.
SHA helped in strengthening farmer organizations, selecting agricultural enterprises, and accessing financial and non-financial services, and business development services. This is intended to help them compete favorably and be able to supply emerging food needs in the region and beyond.
“For us, the main focus is to give the smallholder, resource-constrained farmers an opportunity to engage in this sector,” said Mr. Robert Gensi Regional Agriculture Advisor Self Help Africa.
Petroleum Authority of Uganda (PAU) estimates that additional 1 million people are expected to move into the Albertine Graben during the construction phase of the oil and gas project. That is expected to increase demand for agricultural products.
The strategic location of the Albertine region- to the North and South of the country, the export market to DRC, Rwanda, South Sudan, Tanzania, and demand in Kenya for Agricultural products, offer expanded opportunities.
“All these opportunities are available to be harnessed to enable our smallholder farmers to be part of the growing oil and gas story,” said Gensi.
Running out of trees campaign
TotalEnergies EP and Environmental Conservation Trust of Uganda (ECOTRUST), have partnered to grow 100,000 trees in 12 months in an effort to reduce carbon dioxide from the atmosphere.
In May, Total Energies EP Uganda and ECOTRUST signed a Memorandum of Understanding to implement a tree-growing program in the Tilenga project areas of the Nwoya and Buliisa districts.
The trees will be planted on 250 hectares of land in various public spaces like schools, hospitals, and road reserves. 6000 community volunteers will help plant and monitor the trees.
“This initiative is part of our Corporate Social Responsibility program in line with government objectives to reforest the country through the ‘’Running Out of Trees’’ campaign,” Mr. Philippe Groueix, TotalEnergies EP Uganda said during the signing ceremony.
“This partnership is undertaken in the spirit of Standing Together, as part of TotalEnergies EP Uganda’s ongoing collaborative activities and commitments, to promote and protect environment and biodiversity while working closely with NGOs and the community in our area of operation.” He added.
Training and Skilling
In late August, CNOOC launched training for drivers that will guarantee them licenses to operate Heavy Goods Vehicle (HGV). At the end of the training, they shall be certified and issued driving licenses for class CH. Another group shall be qualified to operate rigid trucks and shall be certified and offered licenses for class CM. 110 drivers shall benefit from this training. CNOOC contracted Uganda Driving Standards Agency (UDSA) to implement the training programme. This is intended to pass out graduates who meet the oil and gas standards in the logistics and transport sector.
In order to create a harmonious existence with the community in its areas of operation, SBC (Uganda)Ltd., the company that is constructing Kabaale International Airport in Hoima, entered into partnerships with three vocational institutions to offer internship placements for graduates holding diplomas in mechanical engineering to train on cranes.
“ We have managed to at least skill 40 operators who are now operating the machines within the four years we have been on the ground,” said Mr. Muriisa Amos PRO SBC.
The need for training rose when the company could not find the right talent to employ, yet the community viewed SBC as deliberately denying them jobs.
At the primary level, SBC is equipping schools with computers. Two schools Kabaale primary school, and Kigaaga Primary School have already benefitted between 2019 and 2021 each with 25 computers. This year Nyamasoga primary school will get its donation. This ensures wider community benefit.
“So we also said that if your son is not directly employed by SBC but is studying in a school where we have donated computers, then that son is benefiting, not directly but indirectly,” said Muriisa.
The computer donation has seen the number of pupils joining the schools rise. Muriisa explained that when the computers were donated to Kabaale primary school in 2019, enrollment was at 350 pupils. By March 2020, that number had tripled to 1,200 pupils, while academically it emerged as the best performing government school in Hoima district.